Deciding how to make the best use of limited resources to satisfy virtually unlimited wants is known in economics as
a. economizing behavior.
b. the fallacy of composition.
c. ceteris paribus.
d. the fallacy that good intentions do not guarantee the desired outcome.
A
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If the Fed increases the money supply in response to positive demand shocks, it
a. lowers the interest rate b. reduces each type of unemployment c. adds its own positive demand shock d. creates financial stability e. crowds out private investment
An increase in the demand for musicians ________ the number of musicians employed, and ________ the wages paid to musicians.
A. increases; increases B. increases; decreases C. decreases; increases D. decreases; decreases
Refer to the above table. If the price is $5, the perfectly competitive firm should produce
A. 105 units. B. 106 units. C. 107 units. D. 104 units.
Open-market operations change:
A. the size of the monetary multiplier but not commercial bank reserves. B. commercial bank reserves but not the size of the monetary multiplier. C. neither commercial bank reserves nor the size of the monetary multiplier. D. both commercial bank reserves and the size of the monetary multiplier.